Boracay scuba group, dive shops fined for price fixing

MANILA, Philippines — The Philippine Competition Commission (PCC) has imposed a P2.17-million fine on Boracay Business Administration of Scuba Shops and the BBASS’ 39 member-shops for engaging in price fixing.

In a decision issued recently, the antitrust agency said the group facilitated the price fixing arrangement, particularly the minimum floor price of P3,000 for discover scuba diving and P25,000 for open water dive courses. 

The group prohibited dive shops from offering customers freebies such as extra dive sessions, masks, T-shirts, meals or photographs, and capped tour guides, hotels and booking agents’ commissions at 10 percent. 

Dive shops that violate the arrangement face fines or closure.

The BBASS and its members said the fixed rates were intended to promote safety and protect local livelihoods.

They said the local government was aware of the price fixing arrangement.

However, the PCC said the arrangement violates the Philippine Competition Act, noting that trade associations cannot act as vehicles for price fixing. 

Administrative local ordinances requiring an association endorsement to operate do not give private groups the legal authority to set commercial market prices, the PCC said.

The agency urged local government units to align their ordinances with the National Competition Policy in order to promote fair and free competition in the tourism sector.

The PCC is mandated to implement the competition law to ensure fair market competition and protect the welfare of consumers.